Switzerland Holds vote on Climate Law with Net-Zero Targets

Switzerland held a crucial vote on Sunday to decide on a new climate legislation aimed at guiding the country towards carbon neutrality by 2050. The Swiss population has been witnessing the alarming effects of global warming on their rapidly receding glaciers, prompting the need for urgent action. The proposed climate bill has garnered significant support in recent opinion polls, which advocate for reducing Switzerland’s reliance on imported fossil fuels and promoting the development and adoption of renewable and locally sourced energy alternatives.

However, the latest survey conducted by gfs.bern indicates a slight decline in support, though still remaining at 63 percent in favor. This shift can be attributed to a fear-driven campaign by the populist right-wing Swiss People’s Party (SVP), which has raised concerns about electricity shortages and potential economic consequences. Voting stations opened at 10:00 am (0800 GMT) and closed at noon, but the majority of ballots are typically cast in advance under Switzerland’s direct democratic system. Preliminary results were expected to be announced by mid-afternoon.

Proponents of the proposed legislation argue that the “Federal Act on Climate Protection Targets, Innovation, and Strengthening Energy Security” is crucial to ensure a stable energy supply for the country. Additionally, they emphasize that it is imperative to combat the devastating impacts of climate change, exemplified by the significant loss of ice volume in the Swiss Alps, where glaciers have diminished by a third between 2001 and 2022.
Approximately three-quarters of Switzerland’s energy is imported, with all consumed oil and natural gas sourced from abroad. Initially, climate activists aimed for a complete ban on oil and gas consumption within Switzerland by 2050. However, the government opposed the proposed Glacier Initiative and instead formulated a counter-proposal that abandoned the idea of a ban while incorporating other measures.

The revised proposal includes provisions such as offering financial support of two billion Swiss francs ($2.2 billion) over ten years to encourage the adoption of climate-friendly alternatives for gas and oil heating systems. It also includes assistance to drive businesses toward green innovation. Almost all of Switzerland’s major political parties endorse the bill, with the exception of the Swiss People’s Party (SVP), the largest party in the country. The SVP initiated the referendum against what it dismisses as an “electricity-wasting law.”

The SVP argues that the bill’s objective of achieving climate neutrality within a little over 25 years would effectively result in a ban on fossil fuels. The party claims that such a ban would jeopardize energy access and lead to a substantial increase in household electricity bills.

Last month, Marco Chiesa, the leader of the Swiss People’s Party (SVP), expressed criticism of the bill, describing its vision as “utopian.” Chiesa argued that the proposed legislation would lead to a staggering increase of 400 billion Swiss francs in energy costs, while having minimal impact on the global climate.

The World Meteorological Organization (WMO) warned in April that the melting of Alpine glaciers would have both immediate and long-term economic consequences. These include the occurrence of natural disasters and a decline in revenue from tourism, as well as implications for the supply of water to rivers and hydroelectric power plants.

In 2021, the SVP successfully lobbied against a law intended to reduce greenhouse gas emissions. However, observers suggest that the party may face greater challenges in persuading the public to support its stance this time.
There is a growing momentum in Switzerland to decrease dependence on foreign energy sources, especially in light of concerns regarding access to these resources following Russia’s invasion of Ukraine.

In addition to the climate law referendum, Sunday’s ballot also includes a vote on whether to increase the tax rate for large businesses.

The Swiss government is aiming to make changes to the constitution in order to enable Switzerland’s participation in an international agreement led by the Organisation for Economic Cooperation and Development (OECD). The agreement aims to establish a global minimum tax rate of 15 percent for multinational corporations. According to the most recent opinion poll, 73 percent of Swiss voters support this plan, which would apply the new rate to all Swiss-based companies with a turnover exceeding 750 million euros.

Up until now, many of Switzerland’s 26 cantons have maintained some of the lowest corporate tax rates globally. This strategy has been justified by the need to attract businesses in the face of high wages and location costs. If implemented, the government estimates that the additional tax revenues generated in the first year alone would range between 1.0 and 2.5 billion Swiss francs.